Satellites Show Mall Traffic Surge in November
BARRONS -- "Mall traffic for November 2010 has shown a steep rise recently, according to a report released today by Thomson Reuters. Using satellite images the firm is able to measure parking lot traffic, which correlates well with same-store sales.
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“Based on this relationship, we may be seeing an early sign that stronger November 2010 mall traffic is pointing to stronger same-store sales,” wrote Thomson Reuters analyst Jharonne Martis-Olivo in the report. At 3.5%, the Thomson Reuters Same-Store Sales Index for November is significantly stronger than the 0.5% in November 2009 and the -7.8% for November 2008.
“Retailers seldom release average ticket prices, but the CPI was flat as of the Nov. 17, 2010 reading,” Martis-Olivo wrote. “Thus, if November mall parking lot traffic has been on the rise, while inflation remains unchanged, then there’s a pretty good chance that shopper conversion rates could be higher this year.”
HT: Norman Berger
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“Based on this relationship, we may be seeing an early sign that stronger November 2010 mall traffic is pointing to stronger same-store sales,” wrote Thomson Reuters analyst Jharonne Martis-Olivo in the report. At 3.5%, the Thomson Reuters Same-Store Sales Index for November is significantly stronger than the 0.5% in November 2009 and the -7.8% for November 2008.
“Retailers seldom release average ticket prices, but the CPI was flat as of the Nov. 17, 2010 reading,” Martis-Olivo wrote. “Thus, if November mall parking lot traffic has been on the rise, while inflation remains unchanged, then there’s a pretty good chance that shopper conversion rates could be higher this year.”
HT: Norman Berger
2 Comments:
i'm not sure this logic is sound.
he may be right, but might this also be an indication of far more promotional activity for the holidays this year and an earlier start to the holiday sales season?
if this traffic is consumers looking to grab a few extreme bargains, this might not be indicative of higher sales at all.
i have no idea which scenario is actually playing out. i'm just assessing the logic of his argument.
Let's hope that mall traffic surges are not the result of swing dance flash mobs showing up as they have in the Phoenix area recently. :)
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